ECN2802

Fall 2010

Review for Exam 2

Dr. Dao

Price Elasticity of Demand: Midpoint Method

Total revenue and elasticity of demand

Determinants of Price elasticity of demand

Price Elasticity of Supply

Determinants of Price elasticity of Supply

Income Elasticity of Demand

Cross-Price Elasticity of Demand

Budget Constraint

Indifference Curves

Optimization

Perfect Complements

Income Effect and Substitution Effect

Normal goods vs. Inferior Goods

Opportunity cost

Explicit vs. Implicit Costs

Accounting vs. Economic Profit

Marginal Product

Production Function

Marginal Cost and Marginal Product

Variable vs. Fixed Cost

Total Cost curve

Marginal Cost

Average Variable Cost

Average Total Cost

Marginal and Average Cost

Economies vs. Diseconomies of Scale

Long run vs. short run

Constant Returns to Scale